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Blackstone Real Estate to buy BioMed Realty for $8 billion
Posted On Oct 09 2015
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Thursday announced a definitive agreement with affiliates of Blackstone Real Estate Partners VIII, for Blackstone to acquire all outstanding shares of common stock of BioMed for $23.75 per share in an all-cash transaction valued at $8 billion.
The share price represents approximately 24 percent premium on BioMed Realty’s unaffected closing stock price on September 22, 2015, before media reports of a possible transaction involving BioMed Realty was release.
The real estate company invests in life science and biotech properties in Boston, San Francisco, San Diego, Maryland, New York, New Jersey and Pennsylvania.
While BioMed’s board has supported the deal, which is expected to close in the first quarter of 2016, is subject to shareholder approval. LLC is acting as lead financial advisor to BioMed, while Raymond James & Associates, Inc.is also acting as a financial advisor in connection with this transaction. Eastdil Secured Group of Wells Fargo & Co., Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp. advised Blackstone, while Simpson Thacher & Bartlett LLP provided legal advice.
The New York Times adds that BioMed Realty, which is based in San Diego, is a company that provides office and research space to the life science industry. Biomed noted that it generally invests in properties with high-quality facilities that meet its requirements.
The deal is one in a series by Blackstone in the real estate sector.
In its most recent quarterly filing with the Securities and Exchange Commission, Blackstone noted that it now has $92.8 billion in total real estate assets under management as of the three months ended June 30, compared with $81.3 billion a year prior. BX settled up 2.7 percent at $34.70.
Costa and Marks wrote that the last big wave of REIT privatizations was between 2005 and 2007, when 30 REITs were acquired. During that period, in February 2007, Blackstone paid $39 billion for Equity Office Properties Trust.
“We think more deals are still to come”, Costa said.
